CFPB Announces Intent To Examine Broader Array of Fintechs: CFPB Also Seeks Comment on Update to Related Procedures

Sullivan & Cromwell LLP - April 29, 2022
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On April 25, the CFPB announced that it is invoking its heretofore “largely unused” or “dormant” authority to examine certain nonbank financial companies that could pose risk to consumers.  According to the CFPB, many of these nonbanks “brand themselves as ‘fintechs’” and operate outside the CFPB’s existing nonbank supervision program.   Noting the rapid growth of consumer offerings by these nonbanks, the CFPB stated its intent to “level the playing field” with supervised banks.  The CFPB also issued a related procedural rule that would allow the CFPB to make public certain information about any final risk determinations made in connection with invoking this nonbank examination authority.

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